TUPELO, Miss., Jan. 22 /PRNewswire-FirstCall/ -- BancorpSouth, Inc.
(NYSE: BXS) today announced financial results for the fourth
quarter and year ended December 31, 2008. Aubrey Patterson,
Chairman and Chief Executive Officer of BancorpSouth, stated, "For
the fourth quarter, BancorpSouth produced solid financial results
in an unusually challenging economic environment. Net income for
the fourth quarter was $16.8 million, or $0.20 per diluted share,
including significant fair value adjustments driven by market
conditions. These non-cash charges related to the valuations of our
mortgage servicing asset and certain investment securities and
reduced net income by $15.3 million, or $0.18 per diluted share.
While many challenges lie ahead, BancorpSouth entered 2009 well
positioned with a strong capital structure, ample liquidity, a
quality loan portfolio, diversified noninterest revenue streams and
continuing profitability." Highlights of the fourth quarter
include: -- Solid profitability for the fourth quarter of 2008,
with net income of $16.8 million, or $0.20 per diluted share. --
Expansion of the net interest margin to 3.74 percent. -- A 5.6
percent increase in loans and leases compared with the end of 2007,
which contributed to the 1.5 percent growth in net interest
revenue. -- Strong credit quality with non-performing loans of 0.64
percent of loans and leases and annualized net charge-offs of 0.57
percent of average loans and leases. -- Double-digit growth in
insurance commissions from the comparable quarter of 2007. --
Further improvement of the ratio of equity to assets to 9.20
percent at the end of 2008 from 9.07 percent at the end of 2007. --
Election not to participate in the U.S. Treasury's Capital Purchase
Program under the Troubled Asset Relief Program (TARP). Summary
Results BancorpSouth's net income for the fourth quarter of 2008
was $16.8 million, or $0.20 per diluted share, compared with $32.2
million, or $0.39 per diluted share, for the fourth quarter of
2007. Net income for the year ended December 31, 2008 was $120.4
million, or $1.45 per diluted share, compared with $137.9 million,
or $1.69 per diluted share, for 2007. Patterson added, "We are
encouraged by BancorpSouth's operating and financial performance
for the fourth quarter of 2008 given the exceptional turmoil in the
financial services industry, capital markets and the national
economy. "During 2008, we continued to execute what has proven over
numerous economic cycles to be a strong fundamental business plan.
While our growth during 2008 moderated by design, careful expansion
into growing, familiar and geographically diversified markets
supported our ability to expand our loan portfolio and secure low
cost deposits. Credit quality remained sound, with losses and
non-performing assets at manageable levels, and our asset/liability
management produced a stable net interest margin. Our noninterest
revenue products and services have strengthened our market presence
and significantly mitigated the impact of interest rate volatility
in our traditional banking business. "These solid operating results
were partially offset in the fourth quarter by the decline in the
fair value of BancorpSouth's mortgage servicing asset. This decline
in value resulted in an after-tax charge of $10.0 million, or $0.12
per diluted share. Current accounting standards also required us to
recognize in the fourth quarter a charge as a result of the other
than temporary impairment of certain investment securities even
though they continue to perform and cash flow. The amount of this
after-tax write down was $5.3 million, or $0.06 per diluted share."
Net Interest Revenue Net interest revenue increased 1.5 percent to
$111.3 million for the fourth quarter of 2008 from $109.7 million
for the fourth quarter of 2007 and 1.6 percent from $109.6 million
for the third quarter of 2008. The fully taxable equivalent net
interest margin increased to 3.74 percent from 3.72 percent for the
fourth quarter of 2007 and 3.67 percent for the third quarter of
2008. "For the fourth quarter, we again generated a relatively high
and stable level of net interest margin through our asset/liability
management strategies," said Patterson. "These strategies are
designed to increase interest revenue and decrease interest expense
by funding loan growth with the proceeds of maturing lower yielding
investment securities, short-term borrowings from the Federal Home
Loan Bank (FHLB) and growth in demand deposits. Because of the
decline in interest rates during the fourth quarter of 2008, our
comparable quarter interest expense on these short-term borrowings
declined significantly. In addition, demand deposits increased by
14.0 percent at year-end 2008 compared with the end of 2007, while
higher cost time deposits decreased by 20.4 percent. "Our
asset/liability management strategies are also focused on
maintaining ample sources of liquidity. We continue to have
substantial capacity for further borrowings with the FHLB and can
readily expand public fund time deposits through more aggressive
pricing." Deposit and Loan Activity Total assets at December 31,
2008 increased 2.2 percent to $13.5 billion from $13.2 billion at
December 31, 2007. Total deposits declined 3.5 percent to $9.7
billion at December 31, 2008 from $10.1 billion at December 31,
2007. Loans and leases, net of unearned income, increased 5.6
percent to $9.7 billion at December 31, 2008 from $9.2 billion at
December 31, 2007. Patterson remarked, "We produced solid loan
growth during 2008, with the annualized rate of growth moderating
to 4.1 percent for the fourth quarter. We believe our loan growth,
as well as the 12.7 percent annualized growth in demand deposits
during the fourth quarter, in part reflects increased market share
due to the strength and stability of BancorpSouth in a period of
increased consumer concern about the performance of the financial
services industry." Provision for Credit Losses and Allowance for
Credit Losses For the fourth quarter of 2008, the provision for
credit losses was $17.8 million compared with $7.8 million for the
fourth quarter of 2007 and $16.3 million for the third quarter of
2008. Annualized net charge-offs were 0.57 percent of average loans
and leases for the fourth quarter of 2008 compared with 0.21
percent for the fourth quarter of 2007 and 0.45 percent for the
third quarter of 2008. Non-performing loans and leases increased to
$61.5 million, or 0.64 percent of net loans and leases, at December
31, 2008 from $28.5 million, or 0.31 percent of net loans and
leases, at December 31, 2007 but declined from $62.5 million, or
0.65 percent of net loans and leases, at September 30, 2008. The
allowance for credit losses increased to 1.37 percent of net loans
and leases at December 31, 2008 compared with 1.25 percent at
December 31, 2007 and 1.35 percent at September 30, 2008. "The
sequential quarter increase in annualized net charge-offs and the
decline in non-performing loans, both as a percentage of net loans
and leases, demonstrates our commitment to addressing emerging
credit issues promptly," commented Patterson. "With a provision for
credit losses of $17.8 million for the fourth quarter of 2008,
compared with actual net charge-offs of $13.8 million for the
quarter, we remained well reserved. Our allowance for credit losses
at the end of 2008 was 2.1 times the amount of non-performing loans
at year end and 2.4 times the amount of annualized net charge-offs
for the quarter." Noninterest Revenue For the fourth quarter of
2008, noninterest revenue declined 28.7 percent, or $15.9 million,
to $39.5 million from $55.3 million for the fourth quarter of 2007.
These results included the pre-tax write down of the mortgage
servicing asset of $16.3 million for the fourth quarter of 2008 and
$4.5 million for the fourth quarter of 2007. They also included the
fourth quarter 2008 pre-tax write down of $8.6 million of other
than temporary impairment of certain investment securities
discussed earlier in this release. After the write down, the
carrying value of these pooled trust preferred securities was $2.4
million at December 31, 2008 and represented our only investment in
this type of security. These securities remain current as to
interest payments but their fair value has been negatively impacted
by current market conditions. Comparable quarter insurance
commission revenue increased 15.9 percent to $18.8 million and
mortgage lending revenue, excluding the decline in the value of the
mortgage servicing asset, rose 20.2 percent to $4.1 million over
the same quarter of 2007. Also included in noninterest revenue in
the fourth quarter of 2008 were security gains totaling $2.4
million. Patterson continued, "Our insurance business produced its
fourth consecutive quarter of double-digit revenue growth,
supported by an insurance agency acquisition in the third quarter
of 2007 and two agency acquisitions in the first quarter of 2008.
While the sharp declines in interest rates during the fourth
quarter had a significant impact on our mortgage servicing asset,
we also believe that the growth in mortgage lending revenue from
originations and refinancings for the fourth quarter reflects an
ongoing opportunity. We note that the carrying value of the
mortgage servicing asset at December 31, 2008 was $25.0 million, or
82 basis points of the unpaid principal balance of the loans being
serviced, compared to 115 basis points at December 31, 2007."
Noninterest Expense Noninterest expense increased 0.8 percent to
$111.1 million for the fourth quarter of 2008 from $110.2 million
for the fourth quarter of 2007 and decreased 4.3 percent from
$116.1 million for the third quarter of 2008. The comparable
quarter increase in noninterest expense is primarily attributable
to the operation of the insurance agencies acquired in the first
quarter of 2008, as well as the opening of new loan production
offices and full-service branch bank offices during 2008. The
sequential quarter decline in noninterest expense is primarily the
result of an increased focus throughout the Company on expense
control and reduction. Capital Management BancorpSouth's long-term,
conservative focus on maintaining a sound and adequate capital
position and ample liquidity provides it with a competitive
advantage in the current economic cycle and enhances its
opportunity for future growth. During 2008, BancorpSouth continued
building upon its strong capital position, expanding its equity to
asset ratio to 9.20 percent at the end of 2008 from 9.07 percent at
the end of 2007. Its equity to asset ratio was 9.34 percent at the
end of the third quarter of 2008. BancorpSouth's ratio of tangible
equity to assets was 7.15 percent at the end of 2008 compared to
7.09 percent at the end of 2007 and 7.25 percent at the end of the
third quarter of 2008. BancorpSouth remains a "well capitalized"
bank holding company as defined by federal regulations, with Tier 1
risk-based capital of 10.79 percent at year end and total risk
based capital of 12.04 percent, compared with required minimum
levels of 6 percent and 10 percent, respectively, to meet the
definition of "well capitalized." BancorpSouth did not repurchase
shares of its common stock during the fourth quarter of 2008.
Summary "Our confidence in the financial strength of BancorpSouth
is exemplified by our decision, after careful deliberation, to
forego participation in the Capital Purchase Program under TARP,"
said Patterson. "While we recognize that the difficult economic
environment will continue to affect our financial and operating
results, BancorpSouth has performed well relative to our peer
group, we have a strong capital structure with ample liquidity and
we continue to build on a quality loan portfolio with manageable
levels of non-performing loans and net charge-offs. "During 2009,
we will remain focused on credit quality, especially with regard to
the early identification and resolution of emerging credit issues.
In addition we will continue to focus on controlling growth, on
further strengthening our capital structure and on expense
management and reduction. As a result, we expect to maintain the
flexibility to respond to strategic opportunities that are
consistent with our long-term growth objectives. We believe we are
well positioned to weather the current environment and that our
financial strength will enhance our ability to grow when the
economic cycle begins to improve." Conference Call BancorpSouth
will conduct a conference call to discuss its fourth quarter 2008
results tomorrow, January 23, 2009, at 10:00 a.m. (Central Time).
Investors may listen via the Internet by accessing BancorpSouth's
website at http://www.bancorpsouth.com/. A replay of the conference
call will be available at BancorpSouth's website for at least two
weeks following the call. Forward-Looking Statements Certain
statements contained in this news release may not be based on
historical facts and are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements may be identified by their
reference to a future period or periods or by the use of
forward-looking terminology such as "anticipate," "believe,"
"estimate," "expect," "may," "might," "will," "would," "could" or
"intend." These forward-looking statements include, without
limitation, statements relating to our credit quality, our loan
growth and growth in demand deposits, our capital structure, the
impact of the economic environment on our financial and operating
results, the management and reduction of our expenses, our
flexibility to respond to strategic opportunities, our financial
strength, our ability to weather the current environment and to
take advantage of opportunities for future growth and growth in
mortgage lending revenue. We caution you not to place undue
reliance on the forward-looking statements contained in this news
release in that actual results could differ materially from those
indicated in such forward-looking statements because of a variety
of factors. These factors may include, but are not limited to,
changes in economic conditions and government fiscal and monetary
policies, fluctuations in prevailing interest rates and the ability
of BancorpSouth to manage its assets and liabilities to limit
exposure to changing interest rates, the ability of BancorpSouth to
increase noninterest revenue and expand noninterest revenue
business, the ability of BancorpSouth to maintain credit quality,
changes in laws and regulations affecting financial service
companies in general, the ability of BancorpSouth to compete with
other financial services companies, the ability of BancorpSouth to
provide and market competitive services and products, changes in
BancorpSouth's operating or expansion strategy, BancorpSouth's
business model, geographic concentration of BancorpSouth's assets,
the ability of BancorpSouth to manage its growth and effectively
serve an expanding customer and market base, the ability of
BancorpSouth to achieve profitable growth and increase shareholder
value, the ability of BancorpSouth to attract, train and retain
qualified personnel, the ability of BancorpSouth to identify, close
and effectively integrate potential acquisitions, the ability of
BancorpSouth to expand geographically and enter growing markets,
changes in consumer preferences, other factors generally understood
to affect the financial results of financial services companies,
and other factors described from time to time in BancorpSouth's
filings with the Securities and Exchange Commission. We undertake
no obligation to update these forward-looking statements to reflect
events or circumstances that occur after the date on which such
statements were made. BancorpSouth, Inc. is a financial holding
company headquartered in Tupelo, Mississippi, with approximately
$13.5 billion in assets. BancorpSouth Bank, a wholly-owned
subsidiary of BancorpSouth, Inc., operates approximately 310
commercial banking, mortgage, insurance, trust and broker/dealer
locations in Alabama, Arkansas, Florida, Louisiana, Mississippi,
Missouri, Tennessee and Texas. BancorpSouth Bank also operates an
insurance location in Illinois. BancorpSouth, Inc. Selected
Financial Data Three Months Ended Twelve Months Ended December 31,
December 31, 2008 2007 2008 2007 (Dollars in thousands, except per
share amounts) Earnings Summary: Net interest revenue $111,321
$109,657 $440,836 $422,899 Provision for credit losses 17,822 7,771
56,176 22,696 Noninterest revenue 39,450 55,314 242,380 231,799
Noninterest expense 111,093 110,169 452,686 428,058 Income before
income taxes 21,856 47,031 174,354 203,944 Income tax provision
5,060 14,803 53,943 66,001 Net income $16,796 $32,228 $120,411
$137,943 Earning per share: Basic $0.20 $0.39 $1.46 $1.69 Diluted
$0.20 $0.39 $1.45 $1.69 Balance sheet data at December 31: Total
assets $13,480,218 $13,189,841 Total earning assets 12,210,439
11,948,038 Loans and leases, net of unearned income 9,691,277
9,179,684 Allowance for credit losses 132,793 115,197 Total
deposits 9,711,872 10,064,099 Common shareholders' equity 1,240,260
1,196,626 Book value per share 14.92 14.54 Average balance sheet
data: Total assets $13,279,593 $13,080,720 $13,200,801 $12,857,135
Total earning assets 12,109,660 11,956,412 12,037,141 11,749,433
Loans and leases, net of unearned interest 9,604,142 9,105,475
9,429,963 8,784,940 Total deposits 9,598,321 10,045,400 9,803,999
10,200,098 Common shareholders' equity 1,239,498 1,162,821
1,224,280 1,121,000 Non-performing assets at December 31:
Non-accrual loans and leases $28,168 $9,789 Loans and leases 90+
days past due 33,373 18,671 Other real estate owned 46,317 24,281
Total non-performing assets 107,858 52,741 Net charge-offs as a
percentage of average loans (annualized) 0.57% 0.21% 0.40% 0.14%
Performance ratios (annualized): Return on average assets 0.50%
0.98% 0.91% 1.07% Return on common equity 5.39% 11.00% 9.84% 12.31%
Net interest margin 3.74% 3.72% 3.75% 3.68% Average shares
outstanding - basic 83,096,799 82,230,448 82,589,400 81,505,510
Average shares outstanding - diluted 83,239,216 82,482,626
82,793,663 81,844,343 BancorpSouth, Inc. Consolidated Balance Sheet
(Unaudited) December 31, % 2008 2007 Change (Dollars in thousands)
Assets Cash and due from banks $291,055 $322,926 (9.87%) Interest
bearing deposits with other banks 13,542 12,710 6.55%
Held-to-maturity securities, at amortized cost 1,333,521 1,625,916
(17.98%) Available-for-sale securities, at fair value 982,859
1,001,194 (1.83%) Loans and leases 9,740,867 9,227,495 5.56% Less:
Unearned income 49,590 47,811 3.72% Allowance for credit losses
132,793 115,197 15.27% Net loans and leases 9,558,484 9,064,487
5.45% Loans held for sale 189,242 128,532 47.23% Premises and
equipment, net 351,204 317,379 10.66% Accrued interest receivable
79,183 96,027 (17.54%) Goodwill 268,966 254,889 5.52% Other assets
412,162 365,781 12.68% Total Assets $13,480,218 $13,189,841 2.20%
Liabilities Deposits: Demand: Noninterest bearing $1,735,130
$1,670,198 3.89% Interest bearing 3,904,307 3,276,275 19.17%
Savings 678,326 698,449 (2.88%) Other time 3,394,109 4,419,177
(23.20%) Total deposits 9,711,872 10,064,099 (3.50%) Federal funds
purchased and securities sold under agreement to repurchase
1,205,366 809,898 48.83% Short-term Federal Home Loan Bank
borrowings and other short-term borrowing 691,510 706,586 (2.13%)
Accrued interest payable 20,755 37,746 (45.01%) Junior subordinated
debt securities 160,312 160,312 0.00% Long-term Federal Home Loan
Bank borrowings 286,312 88,977 221.78% Other liabilities 163,831
125,597 30.44% Total Liabilities 12,239,958 11,993,215 2.06%
Shareholders' Equity Common stock 207,763 205,748 0.98% Capital
surplus 215,255 198,620 8.38% Accumulated other comprehensive
income (loss) (26,896) (7,214) 272.83% Retained earnings 844,138
799,472 5.59% Total Shareholders' Equity 1,240,260 1,196,626 3.65%
Total Liabilities & Shareholders' Equity $13,480,218
$13,189,841 2.20% BancorpSouth, Inc. Consolidated Condensed
Statements of Income (Dollars in thousands, except per share data)
(Unaudited) Quarter Ended Dec-08 Sep-08 Jun-08 Mar-08 Dec-07
INTEREST REVENUE: Loans and leases $139,099 $144,393 $147,289
$159,184 $171,068 Deposits with other banks 111 172 193 208 274
Federal funds sold and securities purchased under agreement to
resell 3 218 - 67 311 Held-to-maturity securities: Taxable 13,625
14,063 15,044 15,947 16,890 Tax-exempt 2,053 1,959 2,025 2,075
2,120 Available-for-sale securities: Taxable 8,693 9,025 8,531
9,564 10,227 Tax-exempt 867 874 1,260 1,204 941 Loans held for sale
2,117 1,920 1,420 2,210 1,751 Total interest revenue 166,568
172,624 175,762 190,459 203,582 INTEREST EXPENSE: Interest bearing
demand 15,924 14,214 12,938 17,257 19,765 Savings 1,080 1,366 1,291
1,543 1,934 Other time 28,293 33,660 39,778 46,860 52,551 Federal
funds purchased and securities sold under agreement to repurchase
2,175 4,308 3,321 5,195 8,259 FHLB Borrowings 4,537 6,277 5,359
6,285 8,107 Other 3,238 3,197 3,232 3,249 3,309 Total interest
expense 55,247 63,022 65,919 80,389 93,925 Net interest revenue
111,321 109,602 109,843 110,070 109,657 Provision for credit losses
17,822 16,306 11,237 10,811 7,771 Net interest revenue, after
provision for credit losses 93,499 93,296 98,606 99,259 101,886
NONINTEREST REVENUE: Mortgage lending (12,174) 3,270 9,507 1,543
(1,149) Credit card, debit card and merchant fees 8,409 8,512 8,846
7,976 7,904 Service charges 16,915 17,687 17,093 15,839 18,125
Trust income 2,328 2,507 2,261 2,234 2,996 Security gains (losses),
net (6,226) 100 199 78 97 Insurance commissions 18,752 21,779
21,462 24,668 16,181 Other 11,446 9,578 13,898 13,893 11,160 Total
noninterest revenue 39,450 63,433 73,266 66,231 55,314 NONINTEREST
EXPENSES: Salaries and employee benefits 64,395 68,865 68,121
70,175 64,594 Occupancy, net of rental income 10,307 10,340 9,716
9,483 8,967 Equipment 6,319 6,214 6,245 6,433 6,078 Other 30,072
30,640 27,982 27,379 30,530 Total noninterest expenses 111,093
116,059 112,064 113,470 110,169 Income before income taxes 21,856
40,670 59,808 52,020 47,031 Income tax expense 5,060 12,325 19,683
16,875 14,803 Net income $16,796 $28,345 $40,125 $35,145 $32,228
Net income per share: Basic $0.20 $0.34 $0.49 $0.43 $0.39 Diluted
$0.20 $0.34 $0.49 $0.43 $0.39 BancorpSouth, Inc. Consolidated
Condensed Statements of Income (Dollars in thousands, except per
share data) (Unaudited) Year To Date Dec-08 Dec-07 INTEREST
REVENUE: Loans and leases $589,965 $668,813 Deposits with other
banks 684 1,144 Federal funds sold and securities purchased under
agreement to resell 288 3,687 Held-to-maturity securities: Taxable
58,679 68,142 Tax-exempt 8,112 8,256 Available-for-sale securities:
Taxable 35,813 41,212 Tax-exempt 4,205 4,026 Loans held for sale
7,667 5,962 Total interest revenue 705,413 801,242 INTEREST
EXPENSE: Interest bearing demand 60,333 83,833 Savings 5,280 9,301
Other time 148,591 215,723 Federal funds purchased and securities
sold under agreement to repurchase 14,999 34,517 FHLB Borrowings
22,458 21,871 Other 12,916 13,098 Total interest expense 264,577
378,343 Net interest revenue 440,836 422,899 Provision for credit
losses 56,176 22,696 Net interest revenue, after provision for
credit losses 384,660 400,203 NONINTEREST REVENUE: Mortgage lending
2,146 6,214 Credit card, debit card and merchant fees 33,743 29,836
Service charges 67,534 68,479 Trust income 9,330 10,154 Security
gains (losses), net (5,849) 121 Insurance commissions 86,661 71,182
Other 48,815 45,813 Total noninterest revenue 242,380 231,799
NONINTEREST EXPENSES: Salaries and employee benefits 271,556
255,342 Occupancy, net of rental income 39,846 35,098 Equipment
25,211 24,214 Other 116,073 113,404 Total noninterest expenses
452,686 428,058 Income before income taxes 174,354 203,944 Income
tax expense 53,943 66,001 Net income $120,411 $137,943 Net income
per share: Basic $1.46 $1.69 Diluted $1.45 $1.69 BancorpSouth, Inc.
Average Balances, Interest Income and Expense, and Average Yields
and Rates (Dollars in thousands) (Unaudited) Quarter Ended December
31, 2008 Average Yield/ (Taxable equivalent basis) Balance Interest
Rate ASSETS Loans, loans held for sale, and leases net of unearned
income $9,773,683 $142,039 5.78% Held-to-maturity securities:
Taxable 1,193,555 13,734 4.58% Tax-exempt 180,695 3,159 6.96%
Available-for-sale securities: Taxable 868,913 8,693 3.98%
Tax-exempt 73,476 1,335 7.23% Short-term investments 19,338 114
2.34% Total interest earning assets and revenue 12,109,660 169,074
5.55% Other assets 1,304,386 Less: allowance for credit losses
(134,453) Total $13,279,593 LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits: Demand - interest bearing $3,811,782 $15,924 1.66%
Savings 684,068 1,080 0.63% Other time 3,400,071 28,293 3.31%
Short-term borrowings 1,828,010 3,951 0.86% Junior subordinated
debt 160,312 3,161 7.84% Long-term debt 287,990 2,838 3.92% Total
interest bearing liabilities and expense 10,172,233 55,247 2.16%
Demand deposits - noninterest bearing 1,702,400 Other liabilities
165,462 Total liabilities 12,040,095 Shareholders' equity 1,239,498
Total $13,279,593 Net interest revenue $113,827 Net interest margin
3.74% Net interest rate spread 3.39% Interest bearing liabilities
to interest earning assets 84.00% Net interest tax equivalent
adjustment $2,506 BancorpSouth, Inc. Average Balances, Interest
Income and Expense, and Average Yields and Rates (Dollars in
thousands) (Unaudited) Quarter Ended December 31, 2007 Average
Yield/ (Taxable equivalent basis) Balance Interest Rate ASSETS
Loans, loans held for sale, and leases net of unearned income
$9,216,034 $173,685 7.48% Held-to-maturity securities: Taxable
1,498,608 16,890 4.47% Tax-exempt 192,464 3,261 6.72%
Available-for-sale securities: Taxable 923,725 10,227 4.39%
Tax-exempt 79,422 1,448 7.23% Short-term investments 46,159 585
5.03% Total interest earning assets and revenue 11,956,412 206,096
6.84% Other assets 1,241,631 Less: allowance for credit losses
(117,323) Total $13,080,720 LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits: Demand - interest bearing $3,214,493 $19,765 2.44%
Savings 700,583 1,934 1.09% Other time 4,512,151 52,550 4.62%
Short-term borrowings 1,382,163 14,320 4.11% Junior subordinated
debt 161,556 3,302 8.11% Long-term debt 141,576 2,054 5.75% Total
interest bearing liabilities and expense 10,112,522 93,925 3.68%
Demand deposits - noninterest bearing 1,618,173 Other liabilities
187,204 Total liabilities 11,917,899 Shareholders' equity 1,162,821
Total $13,080,720 Net interest revenue $112,171 Net interest margin
3.72% Net interest rate spread 3.15% Interest bearing liabilities
to interest earning assets 84.58% Net interest tax equivalent
adjustment $2,514 BancorpSouth, Inc. Average Balances, Interest
Income and Expense, and Average Yields and Rates (Dollars in
thousands) (Unaudited) Year to Date December 31, 2008 Average
Yield/ (Taxable equivalent basis) Balance Interest Rate ASSETS
Loans, loans held for sale, and leases net of unearned income
$9,586,821 $600,925 6.27% Held-to-maturity securities: Taxable
1,282,512 59,119 4.61% Tax-exempt 184,243 12,480 6.77%
Available-for-sale securities: Taxable 859,932 35,813 4.16%
Tax-exempt 90,703 6,470 7.13% Short-term investments 32,930 972
2.95% Total interest earning assets and revenue 12,037,141 715,779
5.95% Other assets 1,291,675 Less: allowance for credit losses
(128,015) Total $13,200,801 LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits: Demand - interest bearing $3,552,690 $60,333 1.70%
Savings 712,330 5,280 0.74% Other time 3,874,192 148,591 3.84%
Short-term borrowings 1,565,381 26,858 1.72% Junior subordinated
debt 160,312 12,469 7.78% Long-term debt 278,845 11,046 3.96% Total
interest bearing liabilities and expense 10,143,750 264,577 2.61%
Demand deposits - noninterest bearing 1,664,787 Other liabilities
167,984 Total liabilities 11,976,521 Shareholders' equity 1,224,280
Total $13,200,801 Net interest revenue $451,202 Net interest margin
3.75% Net interest rate spread 3.34% Interest bearing liabilities
to interest earning assets 84.27% Net interest tax equivalent
adjustment $10,366 BancorpSouth, Inc. Average Balances, Interest
Income and Expense, and Average Yields and Rates (Dollars in
thousands) (Unaudited) Year to Date December 31, 2007 Average
Yield/ (Taxable equivalent basis) Balance Interest Rate ASSETS
Loans, loans held for sale, and leases net of unearned income
$8,880,253 $678,155 7.64% Held-to-maturity securities: Taxable
1,530,247 68,142 4.45% Tax-exempt 189,234 12,701 6.71%
Available-for-sale securities: Taxable 977,459 41,212 4.22%
Tax-exempt 84,292 6,194 7.35% Short-term investments 87,948 4,831
5.49% Total interest earning assets and revenue 11,749,433 811,235
6.90% Other assets 1,217,135 Less: allowance for credit losses
(109,433) Total $12,857,135 LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits: Demand - interest bearing $3,191,433 $83,833 2.63%
Savings 718,080 9,301 1.30% Other time 4,636,436 215,723 4.65%
Short-term borrowings 1,057,057 48,098 4.55% Junior subordinated
debt 159,939 13,067 8.17% Long-term debt 144,006 8,321 5.77% Total
interest bearing liabilities and expense 9,906,951 378,343 3.81%
Demand deposits - noninterest bearing 1,654,149 Other liabilities
175,035 Total liabilities 11,736,135 Shareholders' equity 1,121,000
Total $12,857,135 Net interest revenue $432,892 Net interest margin
3.68% Net interest rate spread 3.09% Interest bearing liabilities
to interest earning assets 84.32% Net interest tax equivalent
adjustment $9,993 DATASOURCE: BancorpSouth, Inc. CONTACT: L. Nash
Allen, Jr., Treasurer and Chief Financial Officer, +1-662-680-2330,
or Gary C. Bonds, Executive Vice President and Controller,
+1-662-680-2332 Web site: http://www.bancorpsouth.com/
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